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Ashford Hospitality Trust Closes Four Hotel Sales, Strikes Deals for Two More

Proceeds will go to paying down property debt to ease leverage.

Overview

  • Ashford Hospitality Trust said it sold four upper-upscale hotels and reached agreements to sell two more as part of a portfolio refresh.
  • The four completed sales generated $252.5 million in gross proceeds, equal to about $280,000 per room.
  • The pending deals cover Lakeway Resort & Spa for $37.8 million and Embassy Suites Dallas Near the Galleria for $17.0 million, with closings targeted by May 2026 subject to standard conditions.
  • The company plans to use most of the cash to pay down mortgages and expects to avoid more than $60 million in future renovation spending.
  • On a measure that includes planned renovations, the closed sales priced at a 6.0% income yield and about 14.5 times hotel cash earnings, while the pending pair priced at a 4.8% yield and about 16.2 times.